Weekly Report 6 / December / 2010

The daily closing above 86.80 was enough to cancel out last week's expectations, despite of that we still maintain the same scenario, according to the Elliott theory mentioned in our previous report. Meanwhile, the bullish B wave extension will currently make us return within the harmonic formation appearing in the image above, where it has taken up a formation near the butterfly harmonic pattern. This formation suggests touching 90.45 since breaching this level and building a base above could extend the bullish direction to reach D2 point levels at 92.60. In the meantime, note that neglecting D1's volatility will make us hold onto our neutrality in our weekly reports, where we recommend following up on our daily reports to witness a clearer sign.

The trading range for today is among the key support around 84.60 and the key resistance around 92.60.

The short term trend is expected sideways as long as trading is between 90.50 and 70.00 with weekly closings.

Previous Report

RecommendationBased on the charts and explanation above our opinion is remaining neutral and following up on daily reports on a primary basis, might be appropriate.